IATA downgrades its 2019 outlook

The International Air Transport Association (IATA) announced a downgrade of its 2019 outlook for the global air transport industry to a $28 billion profit up from $35.5 billion forecast in December 2018. That is also a decline on 2018 net post-tax profits which IATA estimates at $30 billion. The business environment for airlines has deteriorated with rising fuel prices and a substantial weakening of world trade. In 2019, overall costs are expected to grow by 7.4%, outpacing a 6.5% rise in revenues. As a result, net margins are expected to be squeezed to 3.2%, down from 3.7% in 2018. Profit